This is a surprise... Take two identical cars, one with a built-in navigation unit, and the other without built-in navigation, and the one without navigation will be worth more when you go to trade it!
The reasons:
⢠Those looking at used cars are looking for bargains, not technology
⢠Technology changes, so that when you go to trade your NAV-equipped vehicle down the road, the navigation unit could be obsolete.
All the more reason for car makers and navigation makers to get together to design portable in-dash units that can be moved from car-to-car, replaced and/or easily upgraded over the years. They should offer built in hard drives like Chrysler's MyGIG in which a portable navigation unit can just plug into the hard drive, much like you install software on your computer...
The vehicle's built-in touch screen would remain, and would work with Garmin, Tom Tom, or whoever...
Obviously the industry would have to come together and use an operating system that's common to all parties, otherwise this won't work. In any event, I think that's the way this industry should evolve.
Full story here.
Obviously the industry would have to come together and use an operating system that's common to all parties, otherwise this won't work. In any event, I think that's the way this industry should evolve.
Full story here.
ateixeira says:
10:39 AM, 05/10/07
That's not quite how I read it.
It will have a lower residual as a percentage of the original price, but it's still worth more.
One example they gave was the Acura TSX. The NAV option costs $2000, but 2 years later only adds $600 to the resale value.
So it's worth $600 more, but as a % of the original price, the vehicle actually holds a lower residual.
First off, I think that makes a TSX-Navi a bargain. :-)
2nd, I can see why this is the case. A DVD update disk costs a good $200 plus, while you can buy updated maps from Garmin for $75. So it's triple the cost for each update you buy.
That plus look back at the original NAV option on a Honda Pilot - back then they had a 5" screen. The Nuvi pictured above has a 4.3" screen and comes with fresh maps for $700, plus other cool features that Honda didn't offer a few years ago.
Combine those issues and you can see why it may only be worth an extra $600. Buy a new DVD with updated maps, and it'll cost you $850 or so, probably.
rsholland says:
10:56 AM, 05/10/07
True, as my posting is a bit misleading in that I probably could have worded it better. Nevertheless, with an in-dash NAVI unit you take a hit when you go to trade it in—which I find surprising.
estreka says:
12:15 PM, 05/10/07
It's just one more thing that can break. Like anything, it will certainly depreciate. I don't think it's uncommon for options to depreciate faster than the car itself. For instance, I'm not going to pay factory cost for leather seats, 6-disc CD changer, or a navi.
jerrywimer says:
05:07 AM, 05/11/07
I'm not surprised at all. It's always been this way. Before Navigation it was the audio systems themselves. The top-level optional audio setup used to (and in some cases, still does) add nearly as much as the cost of the current navigation upgrades. Yet during resale / trade, the audio in the vehicle is normally discounted to practically nothing as to its added value for the vehicle in question.
msindallas says:
05:40 PM, 05/15/07
Thank you for for the messages. I am fixing to buy a new vehicle soon, and I already have a portable unit (TomTom) in my current car. I was wondering whether to buy the new one with the nav system. Now I think it makes more system to buy the car without it. Best wishes, - MS.